One of the largest licensed lenders in the US will pay a $15 million fine for “widespread illegal conduct” including withdrawing funds from customers’ bank accounts without their consent.
The Consumer Financial Protection Bureau (CFPB) says it’s banning the Chicago-based lender Enova from offering certain consumer loans after the firm violated orders to change its deceptive practices.
The CFPB says Enova withdrew or tried to withdraw funds from consumers’ bank accounts without obtaining their express informed consent. The lender also canceled loan extensions that it had promised to consumers and misrepresented due dates for loan payments.
Enova was fined $3.2 million for similar issues back in 2019, and CFPB director Rohit Chopra says the company violated the agency’s orders to change its ways.